Rio de Janeiro – The Brazilian Development Bank (BNDES) considers the federal highway concession sector an area for potential investment and has already approved 1.127 billion Brazilian reals (US$ 603 million) in financing for three consortia that operate in the sector. The director of the Logistics Department at the BNDES, Marcos Brito Azevedo, estimates that in six years the bank should have turned 3.5 billion reals (US$ 1.9 billion), of a total investment of 5 billion reals (US$ 2.7 billion). The BNDES has already made available 630 million (US$ 340 million) to these consortia.
On Friday (28), Marcos said to Agência Brasil that the technical area of the bank is now setting up the structure for long-term finacning to the consortia that received concessions for federal highways in October 2007. The BNDES finances up to 70% of the cost of the works.
The funds of the loans granted to consortia were used in safety, improvement of highways and services, installation of toll booths, extra lanes and, in some cases, duplication, as well as providing sergvices to users. Now the companies should start receiving the long-term financing, part of which should be used to amortize the bridge loan.
The federal highway concession process is still being technically analysed by the BNDES. In 2010, another three concessions should be closed in Minas Gerais, and should be tendered.
*Translated by Mark Ament
